IDAHO FALLS, Idaho – Smith's Food and Drug Stores Friday announced it will stop receiving Visa credit cards starting next month.
In a news release, the grocery chain said the overpayment of Visa and the issuing of its banks forced retailers to raise prices. The company says that Visa fees are the highest of any credit cards accepted to Smith.
"Visa misused its position and charges excessive fees for a long time," says Mike Schlotman, executive vice president and CFO of Kroger. "They have hidden from customers what Visa and its banks accept to accept Visa credit cards. Visa's excessive fees and unfairness can not continue to be uncontrollable."
The change will take effect on April 3. Smith will continue to receive the Visa debit card, including Mastercard, Discover, and American Express.
Smith is a division of The Kroger Co. and the second store in the company, behind Foods Co. Supermarkets in California, to stop receiving Visa credit cards. Fred Meyer is also owned by Kroger and continues to receive the cards.
Smith operates 4 stores in Idaho, Montana and Arizona; including 55 stores in Utah, 45 stores in Nevada, 23 stores in New Mexico, and 7 stores in Wyoming.